Transporter takes advantage of a good offer in Melbourne’s west to significantly expand its operation
Ron Crouch Transport is moving to a larger facility in Melbourne’s west thanks to an irresistible leasing incentive.
The dangerous goods and general freight carrier is moving from its current 4,500 sq m Sunshine depot to a 13,000 sq m site in Laverton North.
The five-year lease was made possible thanks to an appealing incentive which has been a factor for many operators in securing a bargain.
Managing Director Geoff Crouch says the number of vacant properties is pushing up competition, with operators using enticements to snatch a deal.
“Considering the substantial vacancies in large industrial properties in Melbourne at the moment there are significant incentives that make it a valuable proposition to look at expanding our footprint in Melbourne and that’s exactly what we have done,” Crouch says.
“It’s a substantial financial risk that will virtually triple our capacity so those incentives certainly do make it easier to be able to take that chance.”
As ATN reported, Colliers International is dealing with pre-lease enquiries totalling over 100,000 sq m thanks to low interest rates.
Leasing rather than buying made more sense thanks to the inducement, Crouch says.
“I think if any operator has some degree of reasonable confidence in an improving economy, with low interest rates and high vacancies in large industrial properties would consider now to be the right time to do it,” he adds.
“There’s a lot of properties out there but we had very specific requirements as far as traffic flow and hard stand to pack the vehicles was concerned; the property we were able to secure met all of our requirements.”